2 Auctions of State's Trust Land Cancelled...

2 auctions of state's trust land cancelled, from the Arizona Republic, reports that a year ago, builders couldn't buy land fast enough, no matter how much it cost. Now, Valley land has lost some of its luster with home builders, as evidenced by the State Land Department cancelling two auctions of state trust land in Desert Ridge and Fountain Hills because no builders expressed interest in purchasing them at the appraised values. Potential bidders made it clear they can't pay what the properties are currently appraised for because they would have to charge more for houses than buyers were willing to pay. The state is in the process of having the parcels re-appraised and they may go back on the auction block next year. So far this year, home building in metro Phoenix is down 24 percent from last years record pace. Housing analyst RL Brown said that new home permits could fall as low as 38,000 this year, down 40 percent from last year. Last year's investor frenzy prompted builders to stockpile huge parcels for future growth. But this year, many of those speculators walked away from deals as the housing market slowed. "There's a correction going on in the Valley's housing market now, and I don't think these parcels or many others should be auctioned this year," said Nate Nathan, a land broker with Nathan & Associates.



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